FTC Sues Intuit Over ‘Free’ TurboTax Software

FTC Sues Intuit Over ‘Free’ TurboTax Software

Sarah Tew/CNET

The US Federal Trade Commission has issued a grievance towards Intuit around its TurboTax software, alleging the corporation is deceiving customers by contacting its tax submitting software package “no cost.” 

Millions of people are unable to use the totally free method, the FTC said Tuesday. All around 66% of all tax filers could not use the no cost TurboTax product in 2020, according to the FTC. It truly is not accessible to people with a 1099 form for function in the gig financial system or for these earning a farm money, for illustration.

“TurboTax is bombarding buyers with advertisements for ‘free’ tax submitting expert services, and then hitting them with prices when it’s time to file,” reported Samuel Levine, director of the Bureau of Customer Security. “We are inquiring a court to instantly halt this bait-and-switch, and to secure taxpayers at the peak of submitting period.”

The FTC is looking for a court purchase to halt Intuit from working what the FTC calls its “deceptive marketing” now, pointing to an ad that experienced a disclaimer on display screen though a voiceover said “TurboTax No cost is no cost. Cost-free, free, free of charge, cost-free.”

Intuit called the FTC’s arguments “just not credible” in a assertion, including that almost 100 million Individuals have submitted their taxes for totally free above the final eight many years employing TurboTax.

“Far from steering taxpayers away from cost-free tax planning choices, our free of charge promoting campaigns have led to a lot more People in america filing their taxes for cost-free than ever right before and have been central to boosting awareness of absolutely free tax prep,” mentioned Kerry McLean, executive vice president and basic counsel of Intuit.